Is this the deal to end Boeing's crippling 7-week strike?

More than 30,000 Boeing workers are set to vote again on Monday, deliberating whether to conclude a debilitating seven-week strike. The outcome is significant not only for the workers but also for the company, global travel, and the broader economy. The newly proposed deal isn’t substantially different from a previous offer, which nearly two-thirds of the members rejected.

This strike, led by the International Association of Machinists, is noted as the costliest American strike of the 21st century, amassing $11.5 billion in losses. Despite union leadership urging acceptance, the vote's outcome remains uncertain. The strike has not only hampered Boeing but also airlines awaiting new plane deliveries and suppliers across the U.S.

With Boeing being a major economic force, a recent employment report highlighted 44,000 jobs impacted, including 33,000 strikers and non-striking workers temporarily laid off due to the strike halting the company’s operations. The proposed contract suggests an immediate 13% pay raise, followed by increments over the next four years, cumulating in a 43% raise by 2028. Boeing estimates average annual pay could reach $119,300 by the contract's end.

However, the proposal does not restore the pension plan lost a decade earlier, fueling dissatisfaction among many union members. Despite minor improvements, past experiences suggest members might accept a deal similar to previously rejected terms if leadership's recommendations go unheeded. A Boeing worker expressed discontent, believing the offer fails to compensate for lost wages against inflation.

The pension issue remains a sticking point, with Boeing refusing to reactivate defined-benefit pensions, citing prohibitive costs. The union endeavors to enhance retirement security but hasn't restored the lost pension plan. The membership's resentment stems from past job relocation threats and demands for concession even in prosperous times.

Ending the strike is crucial for the union members financially constricted for the strike's duration and Boeing, whose plane production has ceased. Boeing has faced substantial financial challenges since the 737 Max grounding in 2019, accruing nearly $40 billion in losses. The ongoing strike exacerbates losses, affecting supply chains and delaying aircraft deliveries to airlines.

Boeing's new CEO faces the challenge of resetting strained relations with the union, tasked with managing legacy issues. Both the company and union acknowledge the critical stakes involved, not just for Boeing and its workforce but also for the extensive supply chain and related industries.